IDEAS home Printed from https://ideas.repec.org/a/spr/joiaen/v13y2024i1d10.1186_s13731-024-00391-7.html
   My bibliography  Save this article

Businesses model innovation: a key role in the internationalisation of SMEs in the era of digitalisation

Author

Listed:
  • Luu Tien Dung

    (University of Economics and Law
    Vietnam National University Ho Chi Minh City)

  • Tran Thi Hoang Dung

    (University of Economics and Law
    Vietnam National University Ho Chi Minh City)

Abstract

The study investigates the relationship between digital technology (DT) and the degree of internationalisation of small- and medium-sized enterprises (SMEs). The theoretical model is further extended by reviewing the mediating effects of business model innovation (BMI). The study employed partial least squares structural equation modelling (PLS-SEM) to test the hypotheses based on the cross-sectional data from 495 SMEs in Vietnam. The findings provide a novel perspective on the vital role of DT in BMI. However, DT poses challenges for SMEs in the degree of the internationalisation process. This study combines the internationalisation theory, particularly the Uppsala model and the resource-based view to examine the impact of DT on the internationalisation of SMEs through the mediating role of BMI.

Suggested Citation

  • Luu Tien Dung & Tran Thi Hoang Dung, 2024. "Businesses model innovation: a key role in the internationalisation of SMEs in the era of digitalisation," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-18, December.
    • Handle: RePEc:spr:joiaen:v:13:y:2024:i:1:d:10.1186_s13731-024-00391-7
    DOI: 10.1186/s13731-024-00391-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13731-024-00391-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s13731-024-00391-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marina Dabić & Jane Maley & Leo-Paul Dana & Ivan Novak & Massimiliano M. Pellegrini & Andrea Caputo, 2020. "Pathways of SME internationalization: a bibliometric and systematic review," Small Business Economics, Springer, vol. 55(3), pages 705-725, October.
    2. Sascha Kraus & Matthias Filser & Kaisu Puumalainen & Norbert Kailer & Selina Thurner, 2020. "Business Model Innovation: A Systematic Literature Review," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 17(06), pages 1-20, October.
    3. Bohnsack, René & Kurtz, Hannes & Hanelt, André, 2021. "Re-examining path dependence in the digital age: The evolution of connected car business models," Research Policy, Elsevier, vol. 50(9).
    4. Juan Alcácer & John Cantwell & Lucia Piscitello, 2016. "Internationalization in the information age: A new era for places, firms, and international business networks?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(5), pages 499-512, June.
    5. Gary A Knight & S Tamar Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 124-141, March.
    6. Marjorie Lecerf & Nessrine Omrani, 2020. "SME Internationalization: the Impact of Information Technology and Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 805-824, June.
    7. Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 325-342, June.
    8. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.
    9. Jiatao Li & Liang Chen & Jingtao Yi & Jiye Mao & Jianwen Liao, 2019. "Ecosystem-specific advantages in international digital commerce," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1448-1463, December.
    10. Jonas Soluk & Ivan Miroshnychenko & Nadine Kammerlander & Alfredo De Massis, 2021. "Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities," Entrepreneurship Theory and Practice, , vol. 45(4), pages 867-905, July.
    11. Christoph Zott & Raphael Amit, 2008. "The fit between product market strategy and business model: implications for firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(1), pages 1-26, January.
    12. Klaus E. Meyer & Jiatao Li & Keith D. Brouthers & Ruey-Jer ‘‘Bryan’’ Jean, 2023. "International business in the digital age: Global strategies in a world of national institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(4), pages 577-598, June.
    13. Oluwayemisi Adebola Abisuga-Oyekunle & Swapan Kumar Patra & Mammo Muchie, 2020. "SMEs in sustainable development: Their role in poverty reduction and employment generation in sub-Saharan Africa," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 12(4), pages 405-419, June.
    14. Erevelles, Sunil & Fukawa, Nobuyuki & Swayne, Linda, 2016. "Big Data consumer analytics and the transformation of marketing," Journal of Business Research, Elsevier, vol. 69(2), pages 897-904.
    15. Child, John & Hsieh, Linda & Elbanna, Said & Karmowska, Joanna & Marinova, Svetla & Puthusserry, Pushyarag & Tsai, Terence & Narooz, Rose & Zhang, Yunlu, 2017. "SME international business models: The role of context and experience," Journal of World Business, Elsevier, vol. 52(5), pages 664-679.
    16. Menter, Matthias & Göcke, Lutz & Zeeb, Christopher & Clauss, Thomas, 2023. "Disentangling the complex longitudinal relationships between business model innovation and firm performance," Journal of Business Research, Elsevier, vol. 168(C).
    17. Caputo, Andrea & Pizzi, Simone & Pellegrini, Massimiliano M. & Dabić, Marina, 2021. "Digitalization and business models: Where are we going? A science map of the field," Journal of Business Research, Elsevier, vol. 123(C), pages 489-501.
    18. Hermenegildo Gil-Gomez & Vicente Guerola-Navarro & Raul Oltra-Badenes & José Antonio Lozano-Quilis, 2020. "Customer relationship management: digital transformation and sustainable business model innovation," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 33(1), pages 2733-2750, January.
    19. Sinéad Monaghan & Esther Tippmann & Nicole Coviello, 2020. "Born digitals: Thoughts on their internationalization and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 11-22, February.
    20. Calof, Jonathan L. & Beamish, Paul W., 1995. "Adapting to foreign markets: Explaining internationalization," International Business Review, Elsevier, vol. 4(2), pages 115-131, June.
    21. Bhandari, Krishna Raj & Zámborský, Peter & Ranta, Mikko & Salo, Jari, 2023. "Digitalization, internationalization, and firm performance: A resource-orchestration perspective on new OLI advantages," International Business Review, Elsevier, vol. 32(4).
    22. Gary A Knight & S Tamer Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 334-334, July.
    23. Giorgos Meramveliotakis & Manolis Manioudis, 2021. "Sustainable Development, COVID-19 and Small Business in Greece: Small Is Not Beautiful," Administrative Sciences, MDPI, vol. 11(3), pages 1-15, September.
    24. Bresciani, Stefano & Ciampi, Francesco & Meli, Francesco & Ferraris, Alberto, 2021. "Using big data for co-innovation processes: Mapping the field of data-driven innovation, proposing theoretical developments and providing a research agenda," International Journal of Information Management, Elsevier, vol. 60(C).
    25. Evers, Natasha & Ojala, Arto & Sousa, Carlos M.P. & Criado-Rialp, Alex, 2023. "Unraveling business model innovation in firm internationalization: A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 158(C).
    26. Moema Pereira Nunes & Fernanda Kalil Steinbruch & Greici Ramone Dapper Ranft, 2024. "Analysing the relation between internationalisation and business model innovation through the elements of a business model," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 36(1), pages 136-156.
    27. Desislava Yordanova & Leo-Paul Dana & Tatiana S. Manolova & Albena Pergelova, 2024. "Digital Technologies and the Internationalization of Small and Medium-Sized Enterprises," Sustainability, MDPI, vol. 16(7), pages 1-6, March.
    28. Vasconcelos-Garcia, Madalena & Carrilho-Nunes, Inês, 2024. "Internationalisation and digitalisation as drivers for eco-innovation in the European Union," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 245-256.
    29. Marko Sarstedt & Christian M Ringle & Jun-Hwa Cheah & Hiram Ting & Ovidiu I Moisescu & Lacramioara Radomir, 2020. "Structural model robustness checks in PLS-SEM," Tourism Economics, , vol. 26(4), pages 531-554, June.
    30. Yadong Luo, 2022. "New connectivity in the fragmented world," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(5), pages 962-980, July.
    31. Ojala, Arto & Evers, Natasha & Rialp, Alex, 2018. "Extending the international new venture phenomenon to digital platform providers: A longitudinal case study," Journal of World Business, Elsevier, vol. 53(5), pages 725-739.
    32. Ulla Lehtinen & Martti Saarela & Peetu Virkkala, 2021. "Internationalisation of microenterprises: systematic literature review," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 20(3), pages 234-252.
    33. Christofi, Michael & Zahoor, Nadia & Hadjielias, Elias & Adomako, Samuel, 2024. "Business model innovation and international performance of emerging market international businesses," Journal of International Management, Elsevier, vol. 30(1).
    34. Christian Linder & Christian Lechner & Frank Pelzel, 2020. "Many Roads Lead to Rome: How Human, Social, and Financial Capital Are Related to New Venture Survival," Entrepreneurship Theory and Practice, , vol. 44(5), pages 909-932, September.
    35. Yizhou Chu & Maomao Chi & Weijun Wang & Bo Luo, 2019. "The Impact of Information Technology Capabilities of Manufacturing Enterprises on Innovation Performance: Evidences from SEM and fsQCA," Sustainability, MDPI, vol. 11(21), pages 1-17, October.
    36. Ishaq Ahmad Dar & Mridula Mishra, 2019. "Internationalisation of SMEs: development and validation of a multi-dimensional measurement scale," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 38(4), pages 507-520.
    37. António Carrizo Moreira & Cláudia P. Ribau & Marta Isabel Valente Borges, 2024. "Internationalisation of SMEs: a comparative perspective between Africa and Latin America," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 51(4), pages 513-541.
    38. Christine Legner & Torsten Eymann & Thomas Hess & Christian Matt & Tilo Böhmann & Paul Drews & Alexander Mädche & Nils Urbach & Frederik Ahlemann, 2017. "Digitalization: Opportunity and Challenge for the Business and Information Systems Engineering Community," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 59(4), pages 301-308, August.
    39. Matthias Fabian Gregersen Trischler & Jason Li-Ying, 2023. "Digital business model innovation: toward construct clarity and future research directions," Review of Managerial Science, Springer, vol. 17(1), pages 3-32, January.
    40. Kolagar, Milad & Parida, Vinit & Sjödin, David, 2022. "Ecosystem transformation for digital servitization: A systematic review, integrative framework, and future research agenda," Journal of Business Research, Elsevier, vol. 146(C), pages 176-200.
    41. Thuyuyen H. Nguyen & Michael Newby & Michael J. Macaulay, 2015. "Information Technology Adoption in Small Business: Confirmation of a Proposed Framework," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(1), pages 207-227, January.
    42. Love, James H. & Roper, Stephen & Zhou, Ying, 2016. "Experience, age and exporting performance in UK SMEs," International Business Review, Elsevier, vol. 25(4), pages 806-819.
    43. Nicole Coviello & Liena Kano & Peter W Liesch, 2017. "Adapting the Uppsala model to a modern world: Macro-context and microfoundations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1151-1164, December.
    44. Ardito, Lorenzo & Messeni Petruzzelli, Antonio & Dezi, Luca & Castellano, Sylvaine, 2020. "The influence of inbound open innovation on ambidexterity performance: Does it pay to source knowledge from supply chain stakeholders?," Journal of Business Research, Elsevier, vol. 119(C), pages 321-329.
    45. Elitsa R Banalieva & Charles Dhanaraj, 2019. "Internalization theory for the digital economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1372-1387, October.
    46. Clay M. Voorhees & Michael K. Brady & Roger Calantone & Edward Ramirez, 2016. "Discriminant validity testing in marketing: an analysis, causes for concern, and proposed remedies," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 119-134, January.
    47. Ernesto Cassetta & Umberto Monarca & Ivano Dileo & Claudio Di Berardino & Marco Pini, 2020. "The relationship between digital technologies and internationalisation. Evidence from Italian SMEs," Industry and Innovation, Taylor & Francis Journals, vol. 27(4), pages 311-339, April.
    48. Bryan Jean, Ruey-Jer & Kim, Daekwan & Sinkovics, Rudolf R. & Cavusgil, Erin, 2024. "The effect of business model innovation on SMEs’ international performance: The contingent roles of foreign institutional voids and entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 175(C).
    49. Porfírio, José António & Carrilho, Tiago & Felício, José Augusto & Jardim, Jacinto, 2021. "Leadership characteristics and digital transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 610-619.
    50. Codini, Anna Paola & Abbate, Tindara & Messeni Petruzzelli, Antonio, 2023. "Business Model Innovation and exaptation: A new way of innovating in SMEs," Technovation, Elsevier, vol. 119(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huynh Thi Thuy Giang & Luu Tien Dung & Huynh Thuy Tien & Chung Tu Bao Nhu, 2024. "Customer empowerment and engagement on sharing platform in the retailing sector: testing the mediating effects of service innovation and platform trust," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rong, Ke & Kang, Zhengyao & Williamson, Peter J., 2022. "Liability of ecosystem integration and internationalisation of digital firms," Journal of International Management, Elsevier, vol. 28(4).
    2. George Saridakis & Zaheer Khan & Gary Knight & Bochra Idris & Jay Mitra & Huda Khan, 2024. "A Look into the Future: The Impact of Metaverse on Traditional Theories and Thinking in International Business," Management International Review, Springer, vol. 64(4), pages 597-632, August.
    3. Shaheer, Noman & Kim, Kijong & Li, Sali, 2022. "Internationalization of Digital Innovations: A Rapidly Evolving Research Stream," Journal of International Management, Elsevier, vol. 28(4).
    4. Yu, Honglan & Fletcher, Margaret & Buck, Trevor, 2022. "Managing digital transformation during re-internationalization: Trajectories and implications for performance," Journal of International Management, Elsevier, vol. 28(4).
    5. Mnahel Babgi & Benyamin Aghhavani-Shajari & Marion Vieu, 2023. "Evolution of Digitalization and Internationalization Literature: A Bibliometric and Content Analysis for Future Research Agenda," Post-Print hal-04398156, HAL.
    6. Keith D. Brouthers & Liang Chen & Sali Li & Noman Shaheer, 2022. "Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2088-2115, December.
    7. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda & Nicola, Maura Bedin, 2023. "Innovation in times of crisis: The relevance of digitalization and early internationalization strategies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    8. Fleury, Afonso & Fleury, Maria Tereza Leme & Oliveira, Luis & Leao, Pablo, 2024. "Going digital EMNEs: The role of digital maturity capability," International Business Review, Elsevier, vol. 33(4).
    9. Sinéad Monaghan & Esther Tippmann & Nicole Coviello, 2020. "Born digitals: Thoughts on their internationalization and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 11-22, February.
    10. Bhatti, Waheed Akbar & Vahlne, Jan-Erik & Glowik, Mario & Larimo, Jorma Antero, 2022. "The impact of industry 4.0 on the 2017 version of the Uppsala model," International Business Review, Elsevier, vol. 31(4).
    11. Evers, Natasha & Ojala, Arto & Sousa, Carlos M.P. & Criado-Rialp, Alex, 2023. "Unraveling business model innovation in firm internationalization: A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 158(C).
    12. Zeng, Jing, 2022. "Orchestrating ecosystem resources in a different country: Understanding the integrative capabilities of sharing economy platform multinational corporations," Journal of World Business, Elsevier, vol. 57(6).
    13. Juergensen, Jill Josefina & Narula, Rajneesh & Surdu, Irina, 2022. "A systematic review of the relationship between international diversification and innovation: A firm-level perspective," International Business Review, Elsevier, vol. 31(2).
    14. Ahsan, Mujtaba & Musteen, Martina, 2021. "International opportunity development on crowdfunding platforms: A spatial, temporal, and structural framework," International Business Review, Elsevier, vol. 30(6).
    15. Luíza Neves Marques Fonseca & Clarice Secches Kogut & Angela Rocha, 2023. "Anywhere in the World? The Internationalization of Small Entrepreneurial Ventures using a Social Media Platform," Management International Review, Springer, vol. 63(4), pages 673-696, August.
    16. Jinwan Cho & Eunmi Kim & Insik Jeong, 2023. "Adoption of the 4th Industrial Revolution: evidence from Korean exporters in international markets," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 164-187, February.
    17. Feliciano-Cestero, María M. & Ameen, Nisreen & Kotabe, Masaaki & Paul, Justin & Signoret, Mario, 2023. "Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    18. Deng, Ziliang & Zhu, Ziyan & Johanson, Martin & Hilmersson, Mikael, 2022. "Rapid internationalization and exit of exporters: The role of digital platforms," International Business Review, Elsevier, vol. 31(1).
    19. De Beule, Filip & Van Assche, Ari & Nevens, Joren, 2022. "Additive Manufacturing and Production Internationalization: An Internalization Perspective," Journal of International Management, Elsevier, vol. 28(4).
    20. Stallkamp, Maximilian & Hunt, Richard A. & Schotter, Andreas P.J., 2022. "Scaling, fast and slow: The internationalization of digital ventures," Journal of Business Research, Elsevier, vol. 146(C), pages 95-106.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joiaen:v:13:y:2024:i:1:d:10.1186_s13731-024-00391-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.